Supreme Court of Canada Delivers the Final Word on Pet Valu Class Action

As set out in our e-Communiqué of October 2016, the Supreme Court of Canada recently denied an application for leave to appeal brought by the plaintiff in the Pet Valu class action, bringing an end to the longstanding litigation.

The class action was certified in 2011, claiming damages of $100 million dollars from the franchisor. In October 2014, Pet Valu obtained summary judgment dismissing the majority of the common issues, which focused on its contractual obligation to share volume rebates with franchisees. In January 2016, the Ontario Court of Appeal dismissed all remaining common issues, which related to the statutory duty of good faith and fair dealing under section 3 of the Wishart Act. Ruling in Pet Valu’s favour, the Court made important findings regarding the scope, content and limitations of that duty. On October 6, 2016, the Supreme Court of Canada denied the plaintiff’s application for leave to appeal that decision, delivering a final word on the Pet Valu class action. As a result, the Court of Appeal decision remains a leading appellate statement on the duty of good faith and fair dealing under section 3 the Wishart Act.

Cassels Brock acted for the successful defendant, Pet Valu, in the litigation.